Oil, gas, corn and wheat are the red-hot commodities
The price of gas went to a record high on Thursday morning after a 27% increase. Brent oil also became equally worth $105 a barrel on the futures market. This oil, the basis for Western gasoline prices at the pump, was not so expensive since 2004.
Other commodities are also skyrocketing on the stock markets worldwide after the Russian military attacks. Russia is one of the largest oil suppliers in the world and always cooperates with oil cartel OPEC and thus partly determines the tariffs in the market.
Investors fear that the military conflict in Ukraine, a major supplier of cereals, soy, sugar beet, corn and strawberries, will escalate quickly and that a shortage of raw materials will arise. The price for commonly used metals such as aluminum, copper, iron ore and zinc are higher on the exchanges in Chicago and London. Prices of wheat and palm oil are also going up on the trade fairs.
Ukraine and Russia together account for a quarter of the world’s wheat trade, together supplying a fifth of all corn.
The crisis in Europe is spreading rapidly. A barrel of American oil has become 5% more expensive at $96.86 per barrel.
The United States is said to have tapped its major emergency reserves of crude oil yesterday in an attempt to push gasoline prices there.